Arguments for Discretionary Policies Include

question 29

Multiple Choice

Arguments for discretionary policies include

• A)policy rules can be too rigid because they cannot foresee every contingency.
• B)the time-inconsistency problem can lead to poor economic outcomes.
• C)discretionary policies pursue overly expansionary monetary policies to boost employment in the short run but generate higher inflation in the long run.
• D)all of the above.

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Definitions:

Push And Pull Systems

Supply chain strategies where "push" involves production based on forecasted demand and "pull" relies on actual demand signals for production.

Inventory Management System

A technology-based approach that tracks inventory levels, orders, sales, and deliveries to ensure that the right product is available at the right time.

Seasonality

The occurrence of fluctuations in demand, production, or other variables based on seasonal trends or patterns, often predictable within a calendar year.